U.S. Leveraged-Loan Price Index Soars to the Highest Since 2007
- S&P/LSTA Index rises to 99.07, a more than 14-year high
- Floating-rate debt in demand with rate hikes expected
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U.S. leveraged loans continue to hold sway over investors looking for protection against inflation and rising rates, with average prices on the debt reaching the highest level since July 2007.
The S&P/LSTA Leveraged Loan Price Index jumped 0.05% to 99.07 on Wednesday as buyers pile into the risky debt. Demand for the asset class has been robust for some time as its floating-rate benchmarks prove to be a big draw in a potentially volatile increasing-rate environment.